Exempt Power Duty To Boost Investments: ASSOCHAM To Odisha

Exempt Power Duty To Boost Investments: ASSOCHAM To Odisha

Industry body ASSOCHAM has requested Odisha government to exempt electricity duty for ferro alloy plants to encourage investment for setting up of metallurgical plants across the mineral-rich state.

Metallurgical sector not only provides employment opportunities to unskilled, semi-skilled and skilled people but it also holds the potential to fill state coffers as increase in capacity utilisation will boost demand for raw material thereby adding revenue to state exchequer, ASSOCHAM said in a communication to Odisha chief secretary A P Padhi.

The chamber has suggested Odisha government to refer to the industrial policy of Chhattisgarh which has already exempted electricity duty for 15 years to promote investment in the state, thereby enabling the industry to sustain in initial years of production.

“We request the Government of Odisha to exempt electricity duty for ferro alloy plants for initial 10-15 years depending upon the size of investment from date of commencement of commercial production that will surely help in making the industry commercially viable,” said ASSOCHAM secretary general, D S Rawat in a letter to Padhi.

After completion of this exemption period the electricity duty will also be a revenue source to government of Odisha, said Rawat.

The letter further highlighted benefits to Odisha government and said raw materials like iron ore, manganese ore, chrome ore and coal would be purchased from the state thereby adding to its revenue in the form of royalty, cess, Goods and Services Tax (GST), National Mineral Exploration Trust (NMET), District Mineral Foundation (DMF) and others.

Besides, energy generated from power plants including captive power plant (CPP) will be consumed within the state and majority of finished products will be sold in the state which will further generate revenue in form of GST, it said.

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It also said that in addition to the direct/indirect employment, possibility of other peripheral developments will also increase thereby generating job opportunities for local people and development of area. Read More

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